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China's steel pipe price will keep increasing because of insufficient supplies

As most steel manufactures in China have cut their production capacity due to government’s control over environment, it’s inevitable that China’s steel supply would decrease and the market price would keep increasing. Many manufacturers have to close their plant in order to response to those policies. 

Tianjin region, for example, has cut its plant rate up to over 80%. Due to insufficient raw material supplies, steel manufacturers are now planning to sell steel products at a higher price, affected by the increasing demand for steel products, thus steel prices are nearly decided by demand now. 

Moreover, this is the first time that many steel manufactures stop their production in China, so constructors will be in urgent need of steel profiles after the four-month heating season. In other way, steel traders would like to stock more steel products this winter. 

In conclusion, under the environment protecting policies, the insufficient supply situation shall continue in China’s steel market. 

Tianjin Xinyue Steel Group is a leading manufacturer and exporter of carbon steel pipe, including ERW,  LSAW, SSAW, SMLS, scaffolding and coupler, etc., we will keep concern steel market. 

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